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Tax Planning/Tax treatment of short sale dividend payments.


Tonya wrote at 2013-04-12 20:53:34
Dividends paid from your personal account for a stock you sold short are tax deductible if you itemize your deductible investment expenses. Under Pub 550 - How to Report Investment Expenses: To deduct your investment expenses, you must

itemize deductions on Schedule A (Form 1040). Enter your deductible investment interest expense on Schedule A (Form1040), line 14. Include any deductible short sale expenses. (See Short Sales in chapter 4 for information on

these expenses.) Also attach a completed Form 4952 if you used that form to figure your investment interest expense.

Enter the total amount of your other investment expenses (other than interest expenses) on Schedule A (Form 1040), line 23. List the type and amount of each expense on the dotted lines next to line 23. (If necessary, you can

show the required information on an attached statement.)

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As an Enrolled Agent, I am fully capable of providing tax advice as it relates to personal and business income taxes. Enrolled Agents are the only Federally licensed tax practitioners and are admitted to practice before all administrative functions of the IRS. My specialty is working with small business owners who file Schedule "C" and helping them to structure their business in such a way as to maximize as many tax advantages as possible. I also enjoy working with individuals who have both routine as well as complex tax situations. I prefer to concentrate on individuals and small business tax planning.


I have a 25 year background in financial services including tax, bookkeeping, insurance, real estate and securities. I was previously the Chief Financial Officer of a local and national franchise organization. I am currently semi-retired, but used to own (in partnership with another EA) an individual and small business financial engineering firm where I work with nearly 2,500 individuals and small business owners in nearly every state and almost every continent, assisting them in all aspects of their tax and financial well-being. I have prepared or reviewed more than 8,000 tax returns in my career.

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